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A company has requested clarification on whether natural gas consumed in a heat recovery boiler, as part of a cogeneration system, is exempt from taxation. The DGT ruled that only the gas feeding the turbine to produce electricity and heat is exempt, whereas gas used in the boiler must be taxed.
This ruling clarifies the scope of tax exemptions for cogeneration systems, confirming that tax relief is strictly limited to gas used for power and heat generation via turbines, excluding gas used in recovery boilers.
The tax team reviews your specific situation.
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